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A deterministic mathematical model to support temporal and spatial decisions of the soybean supply chain

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  • Reis, Silvia Araújo
  • Leal, José Eugenio

Abstract

A novel deterministic mathematical model is presented as part of research into a stochastic optimization model for the soybean supply chain in Brazil. The model was conceived as a tool to aid in the decision-making of any trader involved in this highly complex market. The model is intended to be applied to decisions related to tactical planning over a time span of one year. The major spatial and temporal components of the soybean complex, including transportation mode decisions, are incorporated into the model. The mathematical model is described in detail. Several stochastic parameters are used with fixed values in the deterministic model to construct various scenarios. These parameters are the purchase and sale prices of the grain on the market, the crop failure rate and the volumes of demand. The model was tested using data from a large trade in Brazil with consistent results.

Suggested Citation

  • Reis, Silvia Araújo & Leal, José Eugenio, 2015. "A deterministic mathematical model to support temporal and spatial decisions of the soybean supply chain," Journal of Transport Geography, Elsevier, vol. 43(C), pages 48-58.
    • Handle: RePEc:eee:jotrge:v:43:y:2015:i:c:p:48-58
    DOI: 10.1016/j.jtrangeo.2015.01.005
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